AccuShares Spot CBOE VIX Fund Up Class Shares are designed to track the changes in specified measures of price volatility of the S&P 500 Index® occurring from the prior Distribution Date to the next Distribution Date or a Measuring Period. Because the fund could make period Distribution on a monthly basis, the Funds should be considered a short term investment in volatility and if held for the entire Measurement Period will be a one month investment horizon. The S&P 500 is an indicator of U.S. equities and is meant to reflect the characteristics of the large cap universe. Up Shares of the Fund seek to provide investment results which correspond to the performance of its Underlying Index over a one month period, whether favorable or adverse (subject to a maximum increase or decrease of 90%).
The performance of the securities will also incorporate income from the Eligible Assets held by the Fund (if any) and the Daily Amount as defined below (which could be zero). The Underlying Index of the Fund is the CBOE® Volatility Index®, also known as “the VIX®”.
Unlike other exchange traded products, the fund will engage principally in cash distributions and potentially paired share distributions to deliver to the shareholders the economic exposure to the funds’s underlying index, the CBOE Volatility Index. Such distributions may not represent any income or gains on the fund’s eligible assets and may represent a return of shareholder’s capital. Each fund will issue its shares in offsetting pairs, where one constituent of the pair is positively linked to the funds’s underlying index (“Up Shares”) and the other constituent is negatively linked to the fund’s underlying index (“Down Shares”). Therefore, the fund will only issue, distribute, maintain and redeem equal quantities of Up and Down shares at all times.
Shares of the fund are intended for sophisticated investors, professional investors and institutional investors.